North Carolina Down Payment Support Programs

Online Merchant account - The North Carolina Housing Finance Agency got two amazing plans for first-time Home Buyers. These systems are the Down Payment Assistance System and also the Mortgage Credit Certificate.

Should you meet the requirements for one of these plans and you also buy a home between January 1, 2009 and December 1, 2009, you may also be eligible for the $8,000 tax credit only enacted into law.

First, who's a first-time Home Buyer? A first-time Home Buyer is someone who hasn't owned a house in the past three years. Here is the exact same qualifying definition for the $8,000 tax credit.

What's a Mortgage Credit Certificate and Who Qualifies?

The MCC takes this a step farther. An MCC “reduces your tax liability according to a share of the mortgage interest that you pay.

It is possible to claim 20% of the interest you pay as a credit in your federal income taxes should you qualify for the MCC. You can save around .

Should you qualify for 2009, for the MCC, you will be able to unite this with the $8,000 tax credit. This might reduce the tax liability of a buyer's by $10,000.

Household income is defined as the “gross income of the mortgagor and any man expected to reside in the dwelling who is 18 years old or older.”

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Persons $70,500 4 Individuals $70,500

MCC Sales Price Limitations New House $220,000 Existing House $210,000

Who Qualifies for Down Payment Help?

Home buyers that want help with their deposit and closing costs might be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The purchaser just has to pay and the load would pay around .

This program has more rigorous income limits than the MCC program summarized above. Like the MCC application, it can be used along with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment assistance, nonetheless, cannot be applied in combination with the MCC. That is an either or situation.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Men $45,650 3 Men $51,350 4 Men $57,050

Down Payment Support Sales Price Limits New Dwelling $210,000 Existing House $210,000